Our contingency budget is being used for extra features. Is that acceptable?

Contingency misuse

Keep risk-response funding distinct from discretionary scope growth. Using contingency for extras reduces protection against uncertainty and should require an explicit authorized decision.

What to do now

  1. Identify the contingency's original purpose
  2. Trace proposed and actual usage
  3. Assess remaining exposure and funding
  4. Seek approval for any reallocation
Recommended action flow for contingency misuse: Identify the contingency's original purpose then Trace proposed and actual usage then Assess remaining exposure and funding then Seek approval for any reallocation. Escalate when remaining contingency cannot support the agreed risk response.

When to escalate

Escalate when

Remaining contingency cannot support the agreed risk response.

Who decides

The accountable risk owner

Example

A sponsor defers a cosmetic addition because the reserve is still needed for uncertain migration remediation.

Mistake to avoid

Treating unused contingency as a free feature budget.

Prevent a repeat

Review whether response tasks and trigger conditions remain appropriate as the project changes.

Suggested ApprovedFlow setup

  • Documents
  • Tasks
  • Approvals

Store the risk assessment as a controlled project document and assign response tasks; do not assume a native risk engine is enabled. See the platform

Related cases

Practice references